1 FOREWORD The significance of the research topic: The transportation condition of each country is a fact to measure and assess its development standard Although Hanoi capital is a key city of Vietnam, its traffic infrastructure has not been well-developed To solve this problem, we need financial resources to re-arrange the urban traffic of Hanoi The capital’s transport infrastructure has been affected by the urban and economic development The city has diversified available resources to prepare for this growth, however, it is still limited Transport infrastructure has not satisfied the urban development For these reasons, “A research of diversifying financial resources for transport infrastructure development of Hanoi”, which has been worked out as a doctoral thesis of Political Economics field, is necessary in order to show the relationship among resources in the general development The result of the research is aimed to contribute to the socio-economic growth in the development stage of Hanoi capital city Research goals and topics 2.1 Research goals The research is based on scientific basis and surveys about the diversification of financial resources for transportation development In addition, the research proposes solutions for the diversification of financial resources for transport infrastructure development of Hanoi 2.2 Research topics Firstly, the research focuses on systematizing and analyzing the scientific basis for the diversification of financial resources for transport infrastructure development Secondly, doing surveys to collect experts’ opinions about the current situation of diversifying financial resources for transportation development in Hanoi city Thirdly, analyzing and evaluating financial resources for transport infrastructure development during the period of 2008 – 2017 (focusing on the investment in developing road transportation) of Hanoi city Furthermore, the research aims to shape and propose solutions to diversify financial resources for transport infrastructure development of Hanoi Research subject and scope The subject of the research is economic and organizing problems in the mobilization and diversification of financial resources for transport infrastructure development of Hanoi This also means to socialize financial resources for transport infrastructure development in Hanoi - For managers, the thesis approaches in two aspects: Firstly, on one hand, the study summarizes and analyzes contents of management activities in current situation On the other hand, the author of the thesis has interviewed some economic organizations to work out the recipients’ responses to management activities when the diversification of financial resources for transport infrastructure development is implemented Secondly, solutions that are proposed by the thesis for managers, are suitable for current trends and requirements of diversifying financial resources for transport infrastructure development as well as conditions that can be mobilized - Regarding the economic individuals in Hanoi city: This is a significant approaching subject of the thesis These individuals, who are running their own businesses, are creating the level and scale of the diversification They should be both the approaching subject and beneficiaries of the research results With above approaches, the thesis has investigated the topic in different ways and used the latest research methodologies in order to consider all intrinsic and interactive relationships of the researched subjects that involved in the process of diversification In addition, natural relationships are found and quantified in order to point out issues that need actions Furthermore, we can quantify these actions/impacts by real solutions for the diversification of financial resources for transport infrastructure development of Hanoi city 4.2 Method of investigation A survey has been done in order to investigate opinions of experts about the diversification of financial resources for transport infrastructure development in Hanoi city The survey result shows 08 groups of problemts as follows: Group 1: Limitations in diversifying financial resources for transport development of Hanoi city Group 2: Causes of limitations in diversifying financial resources for transport development of Hanoi city 3.1 Research subject Group 3: Plans to establish an organization to manage financial resources for transport development of Hanoi city The direct subject of the research is economic and organizing problems in the mobilization and diversification of financial resources for transport infrastructure development; secondary data about road transportation of Hanoi city Group 4: Structures of specialiazed organizations that perform the function of diversifying financial resources for transport infrastructure development 3.2 Scope of the research - Scope of content and space: based on spatial scope of Hanoi city - Scope of time: the thesis focuses on investigating and evaluating the current situation of diversifying financial resources for transport infrastructure of Hanoi - Scope of content: within the scope of researching and investigating opinions of experts about the diversification of financial resources for transport infrastructure development In addition, the thesis uses secondary data about financial resources for transport infrastructure development in road transport Methodology of approach, investigation and research 4.1 Method of approach Group 5: Management mechanism for the diversification of financial resources for current transport infrastructure development Group 6: Management mechanism for the diversification of financial resources for current transport infrastructure development Group 7: Assessments of the number of members in deparments and agencies that are performing the diversification for transport infrastructure development in Hanoi Group 8: Asssessments on viewpoints related to the diversification of financial resources for transport infrastruture development The questionaires are based on Linkert scale with levels: 1: Absolutely disagree; 2: Disagree; 3: Indecisive, 4: Agree; 5: Absolutely agree 4.3 Method of research Bị lặp lại với nhóm In order to obtain above objectives, the study relies on the dialectical and historical materialism as a methodological basis to research the diversification of financial resources for transport infrastructure development in the relationship with the unstable situation of political, economic, social and environmental factors of the city, the country and the world 4.4 Research questions Question 1: How is the diversification of financial resources for transport infrastructure development in Hanoi city implemented in the current economic development situation? Question 2: What is the importance of financial resources in the process of diversifying financial resources for transport infrastructure development in Hanoi city? Question 3: What are limitations and causes in the process of diversifying financial resources for transport infrastructure development in Hanoi city? Research outline Chapter 1: Overview of published researches related to the study topic Chapter 2: Scientific basis for diversifying financial resources for transport infrastructure development Chapter 3: Research results of diversifying financial resources for transport infrastructure development in Hanoi Chapter 4: Solutions to foster the diversification of financial resources for transport infrastructure development in Hanoi CHAPTER RESEARCH OVERVIEW 1.1 Overview of published researches related to the study topic 1.1.1 Overview of theoretical issues on transport infrastructure development Theories about diversifying financial resources have been written by many scientists and managers Adam Smith (1997); Michael P.Todaro (1998); Joseph E.Stinglits (1995); E.Wayne Nafziger (1998) are among authors, who stressed the capital accumulation and the role of capital in the growth and development of a country They also showed the use of capital in the infrastructure construction for production activities, the circulation and consumption of goods as well as issues related to the allocation of social capital 1.1.2 Overview of researches on the diversification of financial recourses for transport infrastructure development Group 1: Researches on financial resources from the state budget: Edame & Ejue (2013); Aschauer (2007) clarified the role of state budget to the infrastructure development and economic growth They proposed that the government should make a great effort to invest a suitable budget in the development of infrastructure Group 2: Researches on ODA: Byoungki KIM (2006); Tony Addison & Pb Anand (2012); Gavieta (2010); Minoru Makishima and colleagues (2010) affirmed that the target and source of ODA’s capital play a significant role in supplementing the shortage in the development of transport infrastructure in developing and undeveloped countries Group 3: Studies on FDI’s capital invested in transport infrastructure development According to OECD, FDI plays an important role in the global cooperative economy FDI creates a direct, stable and long-term relationship among economies Frank Sader (1990); Glass, A J (2009) showed a strong growth when private sectors participate in infrastructure investment using FDI capital, which is managed by the local government Group 4: Researches on public-private partnerships in infrastructure investment: Alfen (2006); Geneva (2013) showed a new trend in the cooperation of privates and the government in infrastructure development It opens a new path for the process of molibizing capital for investment In adidition, PPP capital is also the motivity and effective solution in mobilizing domestic capital 1.1.3 Overview of published domestic studies related to the thesis topic Some typical researches related to the role of financial resources for infrastructure development in Vietnam includes: Group 1: Studies on state capital in transport infrastructure development: According to domestic researches, which analyzed the current situation of mobilizing internal capital sources to invest in the construction of transport infrastructure, neither government nor private investors can afford to invest in the whole infrastructure system because it can bring low economic efficiency and many risks Group 2: Researches on ODA’s capital for transport infrastructure development: Authors of these studies deeply analyzed the investment in transport infrastructure development using the important capital sources This method of investment requires a large amount of capital and investors will have difficulty in recover the capital Group 3: Studies on attracting FDI’s capital in the investment of transport infrastructure development: These works figured the role of FDI’s capital in the development of infrastructure system that can be a premise for economic development, making Vietnam a developed country in future In addition, they showed solutions to attract more investments and use the foreign FDI’s capital more effectively in the contruction of infrastructure system in order to foster the industrialization and modernization of the country on the way to join the economy of our region and the world Group 4: Studies on public-private partnerships in the investment of infrastructure development: These studies research about the diversity of financial resources in general construction investment and specially in transport infrastructure by attracting resources based on partnership principles 1.2 Raised issues for next research steps of the thesis From the overviews of related studies to the thesis topic, some issues are figured out for next research steps, as follows: Firstly, financial resources for transport infrastructure development of the city should be diversified in the relation to its socio-economic expansion The thesis should clarify the correlation between the capital ownership and management content as well as the use of each capital form and source Secondly, summarizing the experiences of both domestic and foreign regions into lessons to apply to the diversification of financial resources for transport infrastructure development in Hanoi Thirdly, applying the theoretical analytic framework to research, analyze, evaluate the situation and experimentally investigate the diversification of resources for road transport infrastructure development in Hanoi city Fourthly, proposing perspectives, directions and solutions for increasing the diversification of resources for transport infrastructure development in Hanoi during 2018 – 2030 CHAPTER SCIENTIFIC BASIS FOR DIVERSIFYING FINANCIAL RESOURCES FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT 2.1 Fundamental issues about financial resources for transport infrastructure development 2.1.1 Transport infrastructure 2.1.1.1 Definition of transport infrastructure Transport infrastructure is one of significant parts of the infrastructure system Therefore, it is a key framework to support our transport system, including roads and their related constructional structures From the above analysis, it can be refered that transport infrastructure system (or called transport infrastructure) is a system of transport structures built to make certain that the movement, pickups and transport of goods and services of vehicles will be taken place quickly, conveniently and safely 5 2.1.1.2 Role of transport infrastructure in the socio-economic growth Firstly, infrastructure plays a fundamental role in the socio-economic development of every country It brings a driving force for the growth of our economy Secondly, it creates a premise for accelerating the restructuring and changing economic structure of countries Thirdly, since transport system draws an attraction to investors, it plays a role in attracting foreign investment Fourthly, the development of transport infrastructure, especially road transport in undeveloped areas, are quite fair among local regions of different countries 2.1.2 Financial resources - The concept of financial resources: Finance refers to economic relations in the form of currency arised during the process of mobilizing, distributing and using centralized and decentralized monetary funds from economic sectors and classes of population in order to promote the socio-economic growth It includes economic relations among: (1) the government and agencies, economic units and population classes; (2) the intermediary financial institutions and non-financial agencies and population classes; (3) the agencies, economic units and the population as well as their internal economic relations; (4) countries around the world Financial resources are the overall of centralized and decentralized monetary funds raised from economic sectors and classes of the population They can be mobilized to develop the society and economy through the process of distributing and redistributing 2.1.3 Financial resources for transport infrastructure development The financial resources for transport infrastructure development are the overall of centralized and decentralized monetary funds from economic sectors and classes of the population They can be mobilized to develop transport infrastructure that is able to satisfy the requirements of the socio-economic development of a region or a country in a certain period 2.2 Contents of diversifying financial resources for transport infrastructure development - Diversify financial resources mobilized from economic sectors: Financial resources can be mobilized from all state-owned and non-state economic sectors They can be also taken from the foreign invested economic sectors - Diversify forms of mobilization Financial resources can be mobilized from the state budget or through the form of sharing by the government and people as called in the slogan: “the state and people it together” They can also be mobilized by exchanging land for infrastructure or auctioning the rights of using lands 2.3 Factors affecting the the diversification of financial resources for transport infrastructure development Projects, targeted programs and plans to diversify financial resources for transport infrastructure development The organizing the management apparatus to diversify financial resources for transport infrastructure development The system of mechanisms and policies of the diversification to attract financial resources for transport infrastructure development The quality of human resources involved in the diversificaiton of financial resources for transport infrastructure development 2.4 Lessons from the diversification of financial resources for transport infrastructure development Researches on the mobilization of the resources for the transport infrastructure development, especially in road transport, in some particular countries can bring some lessons for the mobilization of the resources for the transport infrastructure development in Hanoi city Firstly, in studied countries, the mobilization of resources for infrastructure development are determined as an important solution to develop the infrastructure Particularly, in transport sector, since the infrastructure needs investing with a large amount of capital, these countries have identified the need of diversifying capital sources Secondly, in the process of diversifying resources, all countries realize the role of the state budget and consider it as a significant factor to attract other resources Most of undeveloped countries and nations, which used to follow the central planning mechanism (as China and Brazil), emphasize the role of resources from the budget and invest a proportion of the budget in the infrastructure development Whilst, although developed countries consider the role of resources from the state budget, they determine that the state budget is not the main capital source to develop infrastructure system Thirdly, countries have called for the participation of private sectors and foreign investors Fourthly, countries collect traffic fees for complete roads and consider this activity as a supplementary resource for maintenance and reinvestment of transport infrastructure development Fifthly, a country needs a synchronous and methodical implementation plan in order to mobilize resources and develop transport infrastructure, especially rural tranport infrastructure Sixthly, it is neccessary to clarify the resources from the state budget and determine the ways of combining them with other resources to promote the attraction and leverage role of this budget source Seventhly, propaganda is an instrument that countries have used to mobilize resources of local people into the construction of rural roads It is a fact that the regions, which have the great participation of local people, have done well in the propaganda activities and completed transport development standards in the process of rural development program Eighthly, piloting, summarizing and expanding forms of attracting capital This is a lesson to mobilize resources for transport infrastructure development in Hanoi city in a sustainable way CHAPTER RESEARCH RESULTS OF DIVERSIFYING FINANCIAL RESOURCES FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT IN HANOI CITY 3.1 Overview of natural and socio-economic conditions affecting the resource mobilization for transport infrastructure development in Hanoi 3.1.1 Positive impacts on the development of transport infrastructure and road transport Firstly, in terms of geographical and political position, Hanoi city, as the political, cultural and economic center of Vietnam, will be the first place to be invested in socio-economic development, including transport infrastructure in general and road transport in particular Secondly, natural resources have reduced costs for constructing transport structures Especially, the city should take road traffic into consideration for evaluating and exploiting Thirdly, the city has advantages of the terrain and river system that make it possible to reduce the investment costs for constructing transport structures It is considered as an important natural resource for the city in the process of building transport infrastructure Fourthly, the natural conditions also support many projects on socio-economic development planning and transport development schedules of Hanoi Fifthly, Hanoi city has a rapid urbanization process that creates an increase in the value of natural resources, especially land resources When Hanoi has a high value of land using rights, which is managed and auctioned by the local government, the exchange of the land for large infrastructure with suitable mechanisms and policies is a valuable resource that the city can exploit to develop transport infrastructure Sixthly, the socio-economic development in Hanoi city make it have a higher income and living standards than other localities This is an important basis for the city to take advantages of its financial resources from local people and let them participate in the transport infrastructure development, especially road transport with the slogan: “the state and people it together” 3.1.2 Negative impacts and challenges in transport infrastructure development and road transport Firstly, the geographical position of Hanoi requires a synchronous and standardized transportation system in general and road traffic in particular With an infrastructure system, the city will need huge resources for road transport infrastructure development Secondly, although the climate in Hanoi is quite favorable for constructing transport structures Thirdly, although the city has a high value of land using rights, it is difficult and challenging to compensate for land acquisition, especially urban land The city should pay attention to this point not only to reduce the investment costs but also to generate revenue for road traffic development Fourthly, the city has been put in the struggling situation when it has to address current urgent requirements while moving to modern and sustainable development in the future This conflict raises issues for planning the infrastructure of the city It requires a broad and long-term vision with the development of provinces in the Red River delta 3.2 Actual situation of transport infrastructure in Hanoi city Hanoi is the capital city of Vietnam, featuring a diverse transport infrastructure with all types of transportation such as airways, railways, waterways and roads 3.3 Results of specialist surveys on the current situation of diversifying financial resources for transport infrastructure development in Hanoi In order to collect data for the research, the author has conducted a questionnaire and distributed it to 200 subjects in the scope of the research The author has collected 175 surveys (about 87,5%) and other 162 questionaires used in the subsequent analysis The analysis of the current situation of diversifying financial resources for transport infrastructure development in Hanoi has worked out some results as follows: 3.3.1 Results of Exploratory Factor Analysis (EFA) on limitations in the diversification of financial resources for transport development in Hanoi city The analysis results show that with 17 evaluating criteria that the author has conducted to measure “limitations in the diversification of financial resources for transport development in Hanoi city”, four key factors can be taken out to evaluate restrictions in the diversification of financial resources for transport development in Hanoi city According to collected surveys, these four factors can explain 70,53% of the variation of the data Therefore, with the above results from exploratory factor analysis, the first 17 evaluating criteria to measure “limitations in the diversification of financial resources for transport development in Hanoi city” will be shortended into four factors 3.3.2 Result of evaluating the reliability of the Cronbach’s Alpha coefficient The research results from the sample show that Cronbach's Alpha coefficient calculated for observed variables of Q2_F1 factor, which is “restrictions in the cooperation, examination and observation of the diversification of financial resources for transport infrastructure”, is 0.890, greater than 0.7 Therefore, it can be concluded that the scale is well-used to measure Q2_F1 factor The variable correlation coefficient – the sum of observed variables is greater than 0.4, ensuring the convergence of the scale However, when the author evaluates Cronbach's Alpha value calculated for each observed variable if item deleted, for observed Q2_10 variable, Cronbach's Alpha coefficient if Q2_10 variable deleted is greater than the general Cronbach's Alpha coefficient Therefore, it is advisable to remove Q2_10 variable in order that the factor F1 is better The research results from the sample show that Cronbach's Alpha coefficient calculated for observed variables of Q2_F2 factor, which is “limitations in the diversification of financial resources for transport development”, is 0.890 (Table 13), greater than 0.7 Therefore, it can be concluded that the scale is well-used to measure Q2_F2 factor The variable correlation coefficient – the sum of observed variables is greater than 0.4, ensuring the convergence of the scale Cronbach's Alpha values calculated for each observed variable if item deleted are less than 0.943 Therefore, no variable should be removed from this scale For Q2_F3 factor, which is “limitations of the management mechanism in the diversification of financial resources for transport development”, the research results from the sample show that Cronbach's Alpha coefficient calculated for observed variables of Q2_F3 factor is 0.795 (Table 7), greater than 0.7 Therefore, Chưa đủ ý it can be concluded that the scale is well-used to measure Q2_F3 factor The variable correlation coefficient – the sum of observed variables is greater than 0.4, ensuring the convergence of the scale Cronbach's Alpha values calculated for each observed variable if item deleted are less than 0.943 Therefore, no variable should be removed from this scale For Q2_F4 factor, which is “limitations of the human resources in the diversification of financial resources for transport development”, the research results from the sample show that Cronbach's Alpha coefficient calculated for observed variables of Q2_F4 factor is 0.530 (Table 8), less than 0.7 Therefore, it can be concluded that the scale is not well-used to measure Q2_F4 factor The variable correlation coefficient – the sum of observed variables is less than 0.4, not ensuring the convergence of the scale Cronbach's Alpha values calculated for each observed variable if item deleted are less than 0.943 Therefore, Q2_16 and Q2_17 variables should be removed from this scale 3.3.3 Factor analysis of causes of the limitations in diversifying financial resources for transport development in Hanoi city Based on Exploratory Factor Analysis (EFA) method, the authors have identified 03 main factors showing “the causes of the limitations in diversifying financial resources for transport development in Hanoi city” However, is the scale of three above groups reliable? To solve this problem, the author uses the method of assessing the reliability of the scale using Cronbach’s Alpha coefficient for each of the above factors 3.3.3.2 Results of the evaluation of the scale using the Cronbach’s Alpha coefficient Causes of the limitations in the diversification of financial resources for transport development in Hanoi city For Q3_F1 factor: Due to the current laws are incomplete and inconsistent in separating financial resources for transport infrastructure development from other development investment activities The research results show that Cronbach's Alpha coefficient of Q3_F1 factor is 0.98, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.98 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For Q3_F2 factor: Due to the lack of a model, mechanism and policy to ensure the diversification of financial resources for transport infrastructure development The research results show that Cronbach's Alpha coefficient of Q3_F2 factor is 0.82, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.82 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For Q3_F3 factor: Due to the lack of observing competence and conditions of management boards The research results of the sample show that Cronbach's Alpha coefficient of Q3_F3 factor is 0.816, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.816 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale Thus, the scale of three main factors that reflects the “causes of the limitations in diversifying financial resources for transport development in Hanoi city” is sufficiently reliable The impact of observed variables in each factor group is shown via models with coefficients taken from factor coefficient matrix 3.3.4 Factor analysis on solutions of diversifying financial resources for current transport infrastructure development 3.3.4.1 Results of Exploratory Factor Analysis (EFA) on solutions of diversifying financial resources for current transport infrastructure development Based on Exploratory Factor Analysis (EFA), the authors have identified main factors showing “solutions of diversifying financial resources for current transport infrastructure development in Hanoi city” 3.3.4.2 Results of the evaluation of the scale using the Cronbach’s Alpha coefficient For F1 factor: Establish a centralized board of financial management for financial resources for the development of Hanoi city 9 The research results show that Cronbach's Alpha coefficient of F1 factor is 0.942, greater than 0.7 The variable correlation coefficient – the sum of observed variables is greater than 0.4 However, Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, Q4_2, are greater than 0.942 Therefore, it is advisable to remove Q4_2 variable for better measurement The reliability of the scale is continued to be re-evaluated and as a result, Q4_3 variable is removed from the scale Therefore, the F1 factor will have only two variables: Q4_1 and Q5_1 For F2 factor: Reinforce the rights and responsibilities of parties in the diversification of financial resources The research results show that Cronbach's Alpha coefficient of F2 factor is 0.884, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.884 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For F3 factor: Enhance mechanism and policies for the diversification of financial resources for transport development The research results show that Cronbach's Alpha coefficient of F3 factor is 0.866, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.866 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For F4 factor: Mechanism to diversify financial resources for transport development The research results show that Cronbach's Alpha coefficient of F4 factor is 0.866, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.866 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For F5 factor: Management mechanism of the diversification of financial resources for transport development The research results show that Cronbach's Alpha coefficient of F5 factor is 0.913, greater than 0.7 However, Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, Q8_4, are greater than 0.913 Therefore, it is advisable to remove Q8_4 variable for better measurement Therefore, the F5 factor will have only two variables: Q8_2 and Q8_3 For F6 factor: Establish a centralized board of financial management for financial resources for the transport development The research results show that Cronbach's Alpha coefficient of F6 factor is 0.8, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.8 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For F7 factor: Build financial management mechanism for financial resources for the transport development The research results show that Cronbach's Alpha coefficient of F7 factor is 0.803, greater than 0.7 Cronbach's Alpha coefficients, if removing variables corresponding to observed variables, are less than 0.803 The variable correlation coefficient – the sum of observed variables is greater than 0.4 Therefore, the scale is a good scale and no variable should be removed from this scale For F8 factor: Establish a financial management corporation of transport infrastructure development The research results show that Cronbach's Alpha coefficient of F8 factor is 0.271, less than 0.7 The variable correlation coefficient – the sum of observed variables is less than 0.4 Therefore, the scale is not a good tool to measure F8 factor Since F9 factor, the establishment of a specialized agency, has only one observed variable, the scale measuring F9 is not reliable Therefore, Q5_2 variable is removed 10 3.3.4.3 Factor analysis results after eliminating unsatisfactory observed variables in evaluating the reliability of the scale In 24 satisfactory standards, measuring “solutions of diversifying financial resources for transport development in Hanoi city”, main factors are drawn out to assess these limitations These factors can explain 74.815% of the variability of the data 3.4 Analyze the current situation of diversifying financial resources for road transport infrastructure development managed by Hanoi city 3.4.1 Current situation of diversifying financial resources for road transport infrastructure development from economic sectors According to the calculations of planners, in order to implement the planning of transport development in Hanoi from now to 2030, the city will need a capital of about VND 1,235,380.34 billion, in which the capital for road projects is spent at VND 523,776.98 billion, railway projects (including national railways and urban railways) at VND 646,524.77 billion, waterway projects at VND 19,750 billion and airports at VND 45,328.59 billion This is a challenging task for Hanoi in solving the capital problem in developing transport infrastructure Table 3.12: Summary of the investment capital for transport infrastructure development in Hanoi Unit : billion VND Capital source 2008 2011 2013 2014 2015 2016 2017 State capital 7509.8 12686.7 14597.6 13403 14359.46 16082.57 18997.27 Non-state 2732.50 4205.10 4510.00 4735.05 4782.86 5739.43 1615.00 capital Source: Collected from the data of Hanoi Department of Transport In addition, it is necessary to drastically reform the administration at all levels, build a responsible, reliable and effective apparatus by promoting officers and enhance the technocratic management and accountability Improving the investment environment and creating the confidence for investors, businesses and local people as well as increasing the provincial competitiveness ranking and indicator of administrative reform, education, healthcare and other services should be also done 3.4.2 Current situation of diversifying financial resources for road transport infrastructure development by mobilization forms 3.4.2.1 Mobilization forms for road transport via the state budget In fact, the amount of budget allocated for regions depends on the level of budget revenues and the percentage that provinces received The mobilization of local budgets for road transport infrastructure development is mostly determined by the advantages of each locatity 3.4.2.2 Mobilization via the form of “the state and people it together” - For the financial resources from the capital contributed by local people: the mobilization amount of financial resources contributed by local people is spent in road transport infrastructure development of the intercommune, inter-village and internal works in residential areas The amount is mainly contribued by suburban residents - In suburban areas: based on the mobilization mechanism for the National Target Program to build new rural area, the contributed capital of rural residents is still at 10% of the total capital source that need to be mobilized 3.4.2.3 Mobilization in the form of exchanging land for infrastructure In 2017, Hanoi issued certificates for investing four road infrastructure projects of 13.303km with a total capital of VND 5,727 billion Accordingly, with the investment in the 13.303km road, investors will receive a total reciprocal land area of 162.71 3.4.2.4 Mobilization in the form of auction of land using rights Auctioning land using rights is also a popular method of mobilizing capital in Vietnam, especially in regions with the high urbanization speed and value of land using rights as Hanoi 11 12 In 2018, Hanoi city auctioned land using rights in 679 projects (including 666 new projects and 13 transitional projects) with a total area of 193.41 ha, expected to collect about VND 13,710.62 billion 111 projects are managed by the city government and other 568 small projects (under 5,000m2) are managed by district governments In 2019, Hanoi is expected to auction about 197ha of land at 635 projects (including 618 new projects and 17 transitional projects) The auction is expected to collect VND 15,972.29 billion (including 152 managed by the city and 483 small projects) The auction plan for 2020 is composed of 453 projects (395 new projects and 58 transitional projects) with a total area of 286.93 ha, expected to collect VND23,855.58 billion 166 projects managed by the city and other 287 small projects are auctioned The total cost for site clearance and constructing technical infrastructure of auction projects for the period of 2018 – 2020 is expected to be VND 17,518.39 billion 3.5 General evaluation of diversifying financial resources for transport infrastructure development in Hanoi 3.5.1 Results - Hanoi city has exploited the state capital with a specific mobilization mechanism in allocating local capital for infrastructure in general and road transport in particular with a large proportion, which is increased every year The city has created an investment environment to attract the non-state capital budget, especially private investment for road transport infrastructure development In addition, it has propagated and promoted the strength of political organizations in mobilizing local people to contribute to the rural transport infrastructure 3.5.2 Limitations and causes 3.5.2.1 Limitations Along with achievements, there are some drawbacks in the process of mobilizing financial resources for road transport development: Table 3.15: Summary of limited factors in diversifying financial resources for road transport development in Hanoi city Factor/ Observed variable Q2_F2 Q2_F1 Q2_F3 Content Limitations in attracting financial resources Limitations in the competence of human resources Limitations in specific regulations to the diversification of resources Observed number Min Max Average Standard deviation 162 1.00 4.80 2.6877 84705 162 1.00 5.00 3.5216 88351 162 2.40 5.00 4.0420 46515 The results of evaluating the limitations in diversifying financial resources for transport development in Hanoi city show that: For criteria to assess “limitations in organizing activities to attract financial resources for transport development of Hanoi city”, the average score assessed by surveyed subjects for this factor is 2.69 points Therefore, according to opinions of surveyed subjects, activities to attract financial resources for transport development of Hanoi is not necessarily a big limitation This factor is specifically assessed as follows: - “Financial resources of the state for investing in transport infrastructure development in Hanoi city are low, compared to the development speed” is assessed with an average score of 2.59 points It shows that the majority of surveyed subjects disagree with this criterion 88 surveyed people (about 54.3%) disagree or absolutely disagree with this criterion - “Financial resources from the city budget for investing in transport infrastructure development” criterion is scored at 3.12 points It’s clear that the majority agree with this idea 69 surveyed people (about 37.9%) agree or absolutely agree with this criterion However, the number of respondents hesitating about the criterion is 42 people (about 23%) This is considered as a drawback that needs to be solved - “The attraction of financial resources from abroad for investing in transport infrastructure development of the city has not been focused on transport development projects” is assessed with an average score of 2.45 points For this criterion, 96 surveyed people (59.3%) disagree or absolutely disagree This is clearly not a limitation - “The attraction of financial resources from enterprises for tranposrt infrastructure investment has not been focused on key transport works of the city” criterion is assessed with an average score of 2.6 points 92 surveyed people (56.2%) disagree or absolutely disagree with this criterion This is not really a limitation - “The city’s administrative agencies performing the diversification of financial resources not have sufficient expertise to diversify the financial resources for transport development projects” is scored at 2.6 points 81 surveyed people (50%) disagree or absolutely disagree and 36 people (22.2%) hesitate Thus, this is not necessarily a limitation For criteria to assess “the limitations in the organization and competence of officers, who are implementing the diversification of financial resources for transport development in Hanoi city”, the average score given by the subjects is 3.25 points Thus, in the opinion of surveyed subjects about this factor, “the limitations in the organization and competence of officers, who are implementing the diversification of financial resources for transport development in Hanoi city” should be solved This factor is specifically assessed as follows: - “The function of financial allocation is limited due to the recruitment of officers and assistants, who are working in an administrative and bureaucratic manner” is assessed with an average score of 3.82 points 121 surveyed people (about 74.7%) agree or absolutely agree with this criterion This is considered as a limitation that need to be solved - “The cooperation to perform some tasks and the powers of the diversification of financial resources among ministries /departments /sectors is limited with low quality” is scored at 3.38 points 109 surveyed people (about 66%) agree or absolutely agree with this criterion Thus, this is considered as a limitation that need to be solved - “Projects attracting the capital from enterprises are checked and observed by many management agencies at all levels for the same content” is rated at 3.75 points 115 surveyed people (about 71%) agree or absolutely agree with this criterion Thus, this is considered as a limitation that need to be solved - “The responsibilities of organizations and individuals performning the function of diversifying financial resources for transport infrastructure development are not clearly assigned” is evaluated at 3.31 points 78 surveyed people (about 48,2%) agree or absolutely agree and 43 people (about 26.5%) hesitate with this criterion Thus, according to surveyed subjects, this is considered as a limitation that need to be solved For criteria to evaluate “the limitations in specific regulations for diversifying financial resources for transport development of Hanoi city”, the average score given by surveyed people is 4.04 points Thus, following the opinion of surveyed subjects, “the limitations in specific regulations for diversifying financial resources for transport development of Hanoi city” is considered as a limitation that should be addressed This factor is specifically assessed as follows: - “There is no specific regulations on the responsibilities to report and explain of agencies assigned to diversify financial resources for transport infrastructure development of the city to elected bodies (People’s Council)” is rated at 3.92 points 134 surveyed people (about 92.7%) agree or absolutely agree with this criterion Thus, according to surveyed subjects, this is considered as a limitation that need to be solved 13 - “The division of the function of diversifying financial resources for transport development within each state agency is still fragmented and overlapped among departments/divisions” is evaluated with an average score of 4.07 points 137 surveyed people (about 84.6%) agree or absolutely agree with this criterion Thus, this is considered as a limitation that need to be solved - “Lack of specific regulations (mechanism of salary, bonus and remuneration) to motivate organizations and individuals of the city’s agencies assigned to perform the diversification of financial resources for transport infrastructure development” is rated at 4.04 points 144 surveyed people (about 82.7%) agree or absolutely agree Accordingly, this is considered as a limitation that need to be solved - “Enterprises are restricted to participate in bidding for investment projects on road transport infrastructure development that are invested by provincial People’s Committee or projects funded by international organizations” is evaluated with an average score of 4.06 points 142 surveyed people (87.7%) agree or absolutely agree Accordingly, this is considered as a limitation that need to be solved - “The function of diversifying financial resources for transport infrastructure development has not been effective and efficient” is scored at 4.12 points 139 surveyed people agree or absolutely agree Accordingly, this is considered as a limitation that need to be solved 3.5.2.2 Causes of limitations The research results of assessment critera about causes of limitations in diversifying financial resources for transport development of Hanoi city show: - Causes from organizing the direction and deployment of diversifying financial resources for transport infrastructure development Firstly, the factor, “due to current laws are incomplete and inconsistent in separating financial resources for transport infrastructure development from other development investment activities”, is assessed by surveyed subjects with an average score of 3.02 points Thus, current laws, which are incomplete and inconsistent in separating financial resources for transport infrastructure development from other development investment activities, is not necessarily a cause - Secondly, the factor that “due to regulations to organize the function of diversifying financial resources from the state and city are inadequate” is rated at 2.79 points 80 surveyed people (about 49.4%) disagree or absolutely disagree and 33 people (about 20.4%) hesitate Thus, this is not necessarily a cause of limitations in diversifying financial resources - Thirdly, the factor that “financial resources are not separated from investment resources” is scored at 2.97 points, which is a proof that the majority of surveyed people agree with this criterion 63 surveyed people (about 38.9%) disagree or absolutely disagree and 30 surveyed people (about 18.5%) hesitate Thus, it can be considered that this is not necessarily a cause of limitations in diversifying financial recourses - Fourthly, the factor that “the rights and responsibilities have not been united and focused by departments in the management of investment capital” is rated at 3.24 points 79 surveyed people (about 49.8%) agree or absolutely agree and 38 people (about 23.5%) hesitate Thus, this can be considered a cause of limitations in diversifying financial resources - Fifthly, the factor that “due to the lack of specific regulations on the content of the state management of financial resources” is scored at 3.31 points 81 surveyed people (about 50%) agree and absolutely agree with this criterion Thus, this can be considered as a cause of limitations in diversifying financial resources - Sixthly, “due to the lack of properly assigning and decentralizing to perform the function of managing financial resources for transport infrastructure investment” factor is assessed with an average score of 2.85 points 77 surveyed people (about 47.5%) disagree or absolutely disagree and 29 people (about 17.9%) hesitate Thus, this is not necessarily a cause of limiations in diversifying financial resources - Causes from the development of target programs and plans to diversify financial resources for road transport infrastructure development The research results show causes of limitations in diversifying financial resources for transport infrastructure development from target programs and plans, as follows: 14 - Fistly, the evaluation criteria of the factor: “due to the lack of a model and mechanism to ensure the diversification of financial resources for transport infrastructure development of Hanoi city" is assessed by surveyed people with an average score of 3.13 points According to the opinion of surveyed people, the lack of a model and mechanism to ensure the diversification of financial resources for transport infrastructure development of Hanoi city is a cause of limitations that need to be addressed - Secondly, “Hanoi city has not determined the priority order to objectives and tasks assigned to each investment project of transport infrastructure development” factor is rated at 3.07 points 60 surveyed people (about 37%) agree or absolutely agree and 47 people (about 29%) hesitate Thus, this is considered as a cause of limitations in diversifying financial resources - Thirdly, “due to the lack of clear regulations on the method of cost account to compensate for projects invested by the city” factor is scored at 3.05 points 60 surveyed people (about 37%) agree or absolutely agree and 51 people (about 31.5%) hesitate Thus, this is considered as a cause of limitations in diversifying financial resources - Fourthly, “the monitoring and evaluation are mainly based on reports of investment projects on financial resources There is not a proper mechanism of evaluation” factor is assessed with an average score of 3.28 points 77 surveyed people (about 41.5%) agree or absolutely agree and 48 people (about 29.6%) hesitate Thus, this is considered as a cause of limitations in diversifying financial resources - “The observation has not been focused on financial indicators” factor is rated at 3.09 points 63 surveyed people (about 39.9%) agree or absolutely agree and 51 surveyed people (about 31.5%) hesitate Thus, according to the assessment of surveyed people, this is considered as a cause of limitations in diversifying financial resources - “The process of observation is difficult to be quantified” factor is evaluated with an average score of 3.18 points 65 surveyed people (about 40.1%) agree or absolutely agree and 57 people (about 35.2%) hesitate Therefore, according to the assessment of surveyed people, this is considered as a cause of limitations in diversifying financial resources To sum up, on the basis of approved projects in the transportation planning in general and the development of road transport infrastructure in particular, Hanoi city has allocated the capital (the proportion of budget capital), called for investments (the structures using non-state capital) Based on the mobilization program, investors resgister for investment In addition, project programs in the construction list are sometimes not detailed and suitable with the current situation - Causes from the mechanism and legal documents to guide and foster the diversification to attract financial resources for transport infrastructure development - Causes from the implementation of diversifying financial resources for transport infrastructure development Diversifying resources for the implementation of master plans in general and transport development planning, including road transport in Hanoi is also in the general situation of the country although local budget and economic potentials feature different advantages - Causes from the inspection, observation, evaluation and adjustment of the diversification of financial resources for road transport infrastructure development For the criteria of assessing “the competence and conditions of management departments to monitor are weak for transport development of Hanoi city”, the average score assessed is 3.48 points Therefore, in the opinion of surveyed people, “the competence and conditions of management departments to monitor are weak for transport development of Hanoi city” is a cause of limitations that need to be solved in the future This factor is specifically assessed as follows: - “The process of implementing the function of diversifying financial resources has not been properly monitored” factor is scored at 3.49 points 90 surveyed people (about 55.6%) agree or absolutely agree and 45 people (about 27.8%) hesitate Therefore, in the opinion of surveyed people, this can be considered as a cause of limitations in diversifying financial resources 15 - “Representatives, who directly manage financial resources of the city have not been monitored and evaluated clearly to give out the final results” factor is assessed with an average score of 3.45 points 89 surveyed people (about 54.9%) agree or absolutely agree and 46 people (about 28.4%) hesitate Thus, in the opinion of surveyed people, this can be considered as a cause of limitations in diversifying financial resources - “Database system and information for the management of financial resources are limited” factor is rated at 3.49 points 92 surveyed people (about 56.8%) agree or absolutely agree and 46 people (about 28.4%) hesitate Thus, in the opinion of surveyed people, this can be considered as a cause of limitations in diversifying financial resources It still takes a long time to solve irrationalities There are cases that are slowly addressed and the handling is still inconsistent This reduce the transparency of legal national documents and laws CHAPTER DIRECTION AND SOLUTIONS TO FOSTER FINANCIAL RESOURCES FOR TRANSPORT INFRASTRUCTURE DEVELOPMENT 4.1 Foundations to propose direction and solutions to continue to diversify financial resources for transport infrastructure development in Hanoi 4.1.1 Development planning for transport infrastructure in Vietnam The development objectives of the development planning for transport infrastructure is a highlight and a requirement in the development period of the country When Hanoi’s transport is developed in that situation with a highly specific mobilization mechanism for transport infrastructure development, the diversification of financial resources become an urgent issure 4.1.2 Socio-economic development strategy of Hanoi city - Develop the transportation system to create a bridge between Hanoi and neighboring areas, Nothern key economic regions and trade, tourism and international exchange centers, central cities and satellite urban areas - Release the traffic jam and construct a synchronous and modern infrastructure; invest in building public transport routes such as overhead railways, subways and underground structures 4.2 Viewpoint of diversifying financial resources for transport infrastructure development in Hanoi Ensure the openness and transparency in diversifying financial resources for transport infrastructure development in Hanoi Ensure the principles of mutual benefits in diversifying financial resources for transport infrastructure development in Hanoi Ensure the efficiency in diversifying financial resources for transport infrastructure development in Hanoi 4.3 Solutions to diversify financial resources for transport infrastructure development in Hanoi 4.3.1 Solutions summarized from the research results The research results following the criteria about solutions to diversify financial resources for transport infrastructure development in Hanoi show that: For criteria to evaluate solutions about “the rights and responsibilities of the parties in the diversification of financial resources”, the average score given by surveyed people is 3.94 points As a result, in the opinion of surveyed people, the solutions about “the rights and responsibilities of the parties in the diversification of financial resources” should be given more attention This factor is specifically assessed as follows: - “The level of determining the rights and responsibilities to attract the diversification of financial resources for transport infrastructure development” is evaluated with an average score of 3.98 points, which is a proof that the majority of surveyed people agree with this criterion 138 surveyed people (about 85.2%) agree or absolutely agree Therefore, this can be considered to be a solution to solve limitations in diversifying financial resources 16 - “The level of determining the rights and responsibilities of capital reprentatives in diversifying financial resources for transport infrastructure development of the city” is rated at 3.88 points, which is a proof that the majority of surveyed people agree with this criterion 127 surveyed people (about 78.4%) agree or absolutely agree Thus, this can be considered to be a solution to solve limitations in diversifying financial resources - “The level of autonomy and self-responsibility of departments in diversifying financial resources for transport infrastructure development of the city” is rated at 3.93 points, which is a proof that the majority of surveyed people agree with this criterion 130 surveyed people (about 80.2%) agree or absolutely agree Thus, this can be considered to be a solution to solve limitations in diversifying financial resources - “The inspection and observation of the use of the capital to diversify financial resources for transport infrastructure development of the city” is scored at 3.97 points, which is a proof that the majority of surveyed people agree with this criterion 137 surveyed people (about 84.6%) agree or absolutely agree Thus, this can be considered to be a solution to solve limitations in diversifying financial resources For criteria to evaluate “the management and use of resources for transport infrastructure development in Hanoi ciy”, the average score given by surveyed people is 3.99 points Hence, in the opinion of surveyed people, the management and use of resources for transport infrastructure development in Hanoi ciy should be given more attention This factor is specifically assessed as follows: - “The inspection and supervision of projects using financial resources for transport infrastructure development of the city” is assessed with an average score of 3.96 points, which is a proof that the majority of surveyed people agree with this criterion 133 surveyed people (about 82.1%) agree or absolutely agree Consequently, this can be considered to be a solution to solve limitations in diversifying financial resources - “The issue of managing the diversification of financial resources for transport infrastructure development of the ciy” is evaluated with 3.94 points, which is a proof that the majority of surveyed people agree with this criterion 129 surveyed people (about 79.6%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources - “The management and use of land in diversification management for transport infrastructure development” is scored at 4.01 points, which is a proof that the majority of surveyed people agree with this criterion 131 surveyed people (about 80.9%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources - “Managing financial resources of members performing the diversification of financial resources for transport infrastructure development” is assessed with an average score of 4.06 points, which is a proof that the majority of surveyed people agree with this criterion 138 surveyed people (about 85.2%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources For criteria to evaluate the “mechanism and polices for diversifying the financial resources for transport infrastructure development in Hanoi city”, the average score given by surveyed people is 2.56 points Therefore, in the opinion of surveyed people, mechanism and polices for diversifying the financial resources for transport infrastructure development in Hanoi city should be given more attention This factor is specifically assessed as follows: - “General assessment of regulations on the diversification of financial resources for transport infrastructure development” factor is evaluated with an average score of 2.36 points, which is a proof that the majority of surveyed people disagree with this criterion 114 surveyed people (about 70.4%) disagree or absolutely disagree Thus, this can be considered that it is not necessarily a solution to solve limitations in diversifying financial resources - “Mechanism and policies for diversifying financial resources for transport infrastructure development of the city” is scored at 3.59 points, which is a proof that the majority of surveyed people agree with this criterion 105 surveyed people (64.8%) agree or absolutely agree Hence, this can be considered to be a solution to solve limitations in diversifying financial resources 17 - “Regulations on the authority to decide on the diversification of financial resources for transport infrastructure development of the city” is evaluated with an average score of 2.15 points, which is a proof that the majority of surveyed people disagree with this criterion 127 surveyed people (about 79.6%) disagree or absolutely disagree Accordingly, this can be considered that it is not necessarily a solution to solve limitations in diversifying financial resources - “General assessment of the authority to decide on the diversification of financial resources for transport infrastructure development of the city” is rated at 2.16 points, which is a proof that the majority of surveyed people disagree with this criterion 125 surveyed people (about 77.2%) disagree or absolutely disagree Accordingly, this can be considered that it is not necessarily a solution to solve limitations in diversifying financial resources For criteria to evaluate the “mechanism for diversifying the financial resources for transport infrastructure development in Hanoi city”, the average score given by surveyed people is 3.85 points Consequently, in the opinion of surveyed people, the mechanism for diversifying the financial resources for transport infrastructure development in Hanoi city should be given more attention This factor is specifically assessed as follows: - “The regulations of the rights to actively mobilize financial resources for transport infrastructure development for the performing units” is evaluated with an average score of 3.78 points, which is a proof that the majority of surveyed people agree with this criterion 114 surveyed people (70.4%) agree or absolutely agree Hence, this can be considered to be a solution to solve limitations in diversifying financial resources - “Units, who perform the diversification of financial resources, need to take effective mobilization projects into consideration to decide” is scored at 3.8 points, which is a proof that the majority of surveyed people agree with this criterion 111 surveyed people (78.5%) agree or absolutely agree Hence, this can be considered to be a solution to solve limitations in diversifying financial resources - “The division and decentralization for the city’s units, especially the rights of attracting financial resources for transport infrastructure development” is rated at 3.96 points, which is a proof that the majority of surveyed people agree with this criterion 128 surveyed people (79%) agree or absolutely agree Hence, this can be considered to be a solution to solve limitations in diversifying financial resources - “Establishing a specialized agency under the form of financial management board controlled by the City People’s Committee to perform the rights and obligations of the city” is rated at 3.87 points, which is a proof that the majority of surveyed people agree with this criterion 125 surveyed people (77.2%) agree or absolutely agree Therefore, this can be considered to be a solution to solve limitations in diversifying financial resources For criteria to evaluate the “management mechanism for diversifying the financial resources for transport development”, the average score given by surveyed people is 3.66 points Thus, in the opinion of surveyed people, the solution of the management mechanism for diversifying the financial resources for transport development should be given more attention This factor is specifically assessed as follows: - “The mechanism of regulating capital in districts and cities” is assessed with an average score of 3.73 points, which is a proof that the majority of surveyed people agree with this criterion 111 surveyed people (79.5%) agree or absolutely agree Hence, this can be considered to be a solution to solve limitations in diversifying financial resources - “The mechanism of mobilizing internal capital in districts” is rated at 3.62 points, which is a proof that the majority of surveyed people agree with this criterion 106 surveyed people (75.4%) agree or absolutely agree Thus, this can be considered to be a solution to solve limitations in diversifying financial resources - “Approaching venture funds” is assessed with an average score of 3.66 points, which is a proof that the majority of surveyed people agree with this criterion 103 surveyed people (73.6%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources 18 - “General assessment of the rights and obligations of all levels and sectors in diversifying financial resources for transport infrastructure development” is evaluated with an average score of 3.66 points, proving that the majority of surveyed people agree with this criterion 100 surveyed people (71.7%) agree or absolutely agree Thus, this can be considered to be a solution to solve limitations in diversifying financial resources For criteria to evaluate the solution on “Establishing a centralized management agency of financial resources for transport development”, the average score given by surveyed people is 3.71 points Thus, in the opinion of surveyed people, the solution on establishing a centralized management agency of financial resources for transport development should be given more attention This factor is specifically assessed as follows: - “Promoting different people to unify and focus on the function of financial resource management for transport infrastructure development (Departments and branches focus on managing financial resources for transport infrastructure development together) is evaluated with an average score of 3.73 points, proving that the majority of surveyed people agree with this criterion 115 surveyed people (81%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources - “Establishing a specialilzed agency to perform the rights and obligations of the city organized in the form of a financial management committee” is rated at 3.7 points, proving that the majority of surveyed people agree with this criterion 115 surveyed people (81%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources For criteria to evaluate the solution on “the mechanism of managing financial resources for transport development”, the average score given by surveyed people is 3.56 points Therefore, in the opinion of surveyed people, the mechanism of managing financial resources for transport development should be given more attention This factor is specifically assessed as follows: - “The number of member companies under the control of provincial departments performing the diversification activities for transport infrastructure development goes beyond the scale of the investment for transport infrastructure development of the city” is rated at 3.97 points, proving that the majority of surveyed people agree with this criterion 126 surveyed people (77.8%) agree or absolutely agree Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources - “The management mechanism of captials is still out-of-date and unprofessional with too many administrative formalities” is rated at 3.16 points, proving that the majority of surveyed people agree with this criterion 52 surveyed people (32.1%) agree or absolutely agree and 74 people (about 45.7%) hesitate Accordingly, this can be considered to be a solution to solve limitations in diversifying financial resources 4.3.2 Solutions to foster the diversification of financial resources for transport infrastructure development in Hanoi - Group of solutions on revising and adjusting the traffic development planning, creating a premise for solutions to diversify financial resources for transport infrastructure development - Group of solutions on establishing an organizational structure of direction and implementation of the diversification of financial resources for transport infrastructure development - Group of solutions on building target programs and plans to diversify financial resources for transport infrastructure development - Group of solutions on building a system of mechanisms and policies to attract financial resources for transport infrastructure development - Group of solutions on organizing the diversification of financial resources for transport development + For financial resources from the state budget: Issues related to the state budget include: (1) Actively exploit additional resources for the state budget, including the capital from the construction of transport infrastructure that has been collected from the revenue of land renting difference of the newlybuilt roadside land 19 (2) Actively allocate according to the plans and schedule, whereby the mobilization of other capital sources are favorable because the state budget is to attract other sources, to create a land fund for constructing transport infrastructure in the site clearance and to invest in other initial articles - Mobilizing financial resources form foreign invested economy In order to successfully attract foreign capital to invest in transport infrastructure development of Hanoi, its City Party and People’s Committee need to build reasonable and stable strategies on the basis of the current situation of Hanoi and domestic and foreign market information + For financial resources from privates and local people - Mobilizing the capital through the form of “the state and people it together” - Mobilizing the capital through the form of exchanging land for infrastructure - Mobilizing the capital through the form of auctioning land using rights - Solutions on enhancing the inspection the diversification of financial resources for transport development in Hanoi Improve the effectiveness of internal control and audit; effectively manage the project management staff, especially raise the competence of evaluating and appraising projects as well as ethics of officials, public servants and employees - Foster the professionalism and transparency of the stock market and commercial banks in order to increase the opportunities to access capital for investors in transport infrastructure development in Hanoi Capital and credit market are considered as the most effective capital mobilization channel, both in the width and depth, with the main participation of commercial banks and financial organizations Currently, commercial banks and financial organizations play an extremely significant role in providing captial for investors in transport infrastructure development CONCLUSION Diversifying financial resources for transport development is mechanisms, policies and solutions to attract and mobilize the capital from different sources in the society to invest in transport infrastructure development in a period in order to satisfy the requirements of socia-economic growth in each country, locality, territory and even in every business establishment Diversifying investment capital sources, including the investment of transport infrastructure development, is a long-term economic and social task Therefore, it needs to be done by the state management organizations, local people and economic establishments in a synchronous way to bring the most effective results ... economic structure of countries Thirdly, since transport system draws an attraction to investors, it plays a role in attracting foreign investment Fourthly, the development of transport infrastructure,... financial resources” should be given more attention This factor is specifically assessed as follows: - “The level of determining the rights and responsibilities to attract the diversification of financial... invested economy In order to successfully attract foreign capital to invest in transport infrastructure development of Hanoi, its City Party and People’s Committee need to build reasonable and stable